a.) What is the probability of winning?
probability is 21/44 = 0.47727
b) What are the actual odds against winning
odds against winning = # of ways of loss : # of ways of winning
odds against winning = 23:21
| c) The payoff odds are 1:1. How much profit do you make if you bet $14 and win? |
When the payoff odds are 1:1, you win exactly as much as you bet. so if you win , the payoff is $14
| d) How much profit should you make on a $14 bet if the payoff odds are the same as the actual odds against winning? |
The actual odds against winning are 23:21, so the payoff odds were the same as the actual odds, then a wining 14$ bet would be paid 14.23/21 = $15.33
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